1. 2015 Shanghai S&OP Conference November 12, 2015 Guofeng Hotel Shanghai, China November 12, 2015 Guofeng Hotel Shanghai, China Bob Stahl 508-226-0477 RStahlSr@aol.com www.RAStahlCompany.com Bob Stahl 508-226-0477 RStahlSr@aol.com www.RAStahlCompany.com Sales & Operations Planning: The New Approaches of Best Practice

2. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.comObjectiveObjective Desired Outcome : Gain an informed understanding of some of the “new approaches” that support S&OP as “best practice,” enabling maximum potential benefits to be experienced!

3. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.comAgendaAgenda Introduction “Refresher” on authentic S&OP New Approaches: –Market Facing Families –Multiple View Forecasting –Simplifying Assumptions about Mix –Real World Benefits of doing S&OP well Hard & Soft

4. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com A Few Things... English as a second language –Your English is a lot better than my Chinese I may ask Alice & Liza to help with communication Questions at any time – they are NOT an interruption – it’s part of learning

5. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl’s Background 40+ years in manufacturing companies Started as Schedules Coordinator (1970) With help of Oliver Wight, achieved Class A success (1979) Became an associate of Oliver Wight – 1982 (passed in 1983) Have worked with some of the best companies in the world Today = S&OP Coach, Educator, Author Has written six books with Tom Wallace – –Three have been used for APICS Certification S&OP Editor and Columnist – –Inaugural for the IIF’s Journal of Forecasting - Foresight Heads up consulting services for TFWallace & Company “Retired” = choices

6. “Refresher” on the Fundamentals of Authentic eS&OP

7. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com The Mission High Quality (High Conformance) Low Cost (Low Inventory) Customer Service Quick Response Reliability Wide Variety Meeting World Class Standards In Getting to AND... Diminishing OR

8. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Historical Evolution... Plant Scheduling/Pull MS Exec. S&OP / Rough Cut PTF 24 Months Time Most DetailAggregate Only Exac Config...Precise Mat’l...# People...Capital Equip...Factory Space Detailed Forecasting & Master Scheduling Lost in the woods- Detail Engage Top Management? Added Little Value outside the Planning Time Fence Super MS SalesMarketingMIXVOLUME

9. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Routinely Re Active Behavior Volume Mix How Much? Rates Mkt Facing Families The Big Picture Strategy/Policy/Risk Monthly / 18 - 36 Mos Executive Resp. Which Ones? Timing/Sequence The Details Products/SKU’s/Orders Tactics/Execution Weekly/Daily 1-3 Mos Middle Mgt. Resp. Demand Supply Balance Different & separate practices, but integrated! Different & separate practices, but integrated! Sales & Operations Planning Fundamentals Pro Active Behavior Planning Scheduling

10. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com ERP Enterprise Resource Planning Business Planning Strategic Planning Forecasting & Demand Management Volume Executive S&OP Sales Plan Operations Plan Capacity Planning SupplyDemand Mix Master Scheduling Mix Master Scheduling Detailed Planning & Execution Systems: MRP, Plant Scheduling, Supplier Scheduling, etc. Detailed Planning & Execution Systems: MRP, Plant Scheduling, Supplier Scheduling, etc. Transactional Software

11. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Sales & Operations Planning (A word about terminology) DemandSupply Volume Mix Executive S&OP (eS&OP) (eS&OP) Demand Planning Supply Planning Master Scheduling Demand Pull Inside & Outside

12. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Executive S&OP is... APICS Dictionary, 13th Edition, October 2010 The executive portion of the overall sales and operations planning set of processes. It is a decision-making activity involving the leader of the business (president, general manager, COO, managing director), his or her staff, and a number of middle managers and specialists. Its mission is to: 1.balance demand and supply at the aggregate level, 2.align operational planning with financial planning, 3.link strategic planning with day-to-day sales and operational activities. 4.Disciplined forum for the setting of policy, strategy, access and assume risk It is a multi-step process involving demand planning, supply planning, and middle and top management meetings for decision-making and authorization Top Management’s Handle on the Business eS&OP – does the proper prior planning to allow the routine things to be done routinely!!

13. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Executive S&OP = Keystone If supply chain management can be compared to a stone arch, Executive S&OP is the Keystone: –The Keystone alone does not make an arch, but –Without the Keystone, nothing else can stand

14. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Data Dump (Warehouse) Information (Org Data) Knowledge Understanding Two Parts of eS&OP The mechanics: âDisplay of Info (Holistic View) âDefined Process For Decision Making

15. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Holistic Display

16. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com16 The eS&OP Process Step #1 Data Gathering End of Month Decisions & Game Plan Step #5 Executive Meeting Conflict Resolution, Recommendations & Agenda for Exec. Mtg. Sales Actuals, Statistical Forecasts & Production Actuals Step #2 Demand Planning Step #4 Pre-S&OP Meeting Capacity constraints 2nd-pass spreadsheets Management Forecast 1st-pass spreadsheets Step #3 Supply Planning Heavy Lifting Financial Involvement New Product Involvement Creates a Disciplined Rhythm It is a multi-step process involving demand planning, supply planning, and middle and top management meetings for decision-making and authorization

17. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Where does eS&OP Fit? Strategic Planning Detailed Planning, Scheduling & Execution Detailed Planning, Scheduling & Execution Business Planning Disconnect!!! Executive S&OP Turning Disconnected Knobs? Where Executives Live Where Executives Live Where Mid-Mgt. Lives Where Mid-Mgt. Lives

18. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com “Strategic Planning... forward in reverse” Robert Hayes HBR-Nov/Dec 1985 Strategic Planning - forward in reverse Executive S&OP Strategic Imperatives Tactical Planning Execution Executive S&OP Annual Business Plan Master Schedule Doing The Right Things Doing The Things Right Linking Strategic Imperatives to Day-To-Day Tactical Planning

19. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Levels of Business Planning

20. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Levels of Business Planning

21. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Acid Test... If the Annual Business Planning process does not substantively change, eS&OP is not working. If eS&OP is not sufficient to set the ABP from, it is not sufficient to run the business every month!

22. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Done Properly... Simpler (Not Easier) Better

23. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com eS&OP Ref Material

24. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.comAgendaAgenda Introduction “Refresher” on authentic S&OP New Approaches: –Market Facing Families –Multiple View Forecasting –Simplifying Assumptions about Mix –Real World Benefits of doing S&OP well Hard & Soft

25. Market-Facing Families

26. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Using Market-Facing Families & Simplifying Data Assumptions Resource Department Equipment Supplier Operations (Supply) // Sales & Marketing (Demand) Markets Segments Channels Customers Markets Segments Channels Customers Traditional Solutions : 1.Full Granularity orFull Granularity or 2.Fcs’t in Supply FamiliesFcs’t in Supply Families Traditional Solutions : 1.Full Granularity orFull Granularity or 2.Fcs’t in Supply FamiliesFcs’t in Supply Families Best Solution: 1.Market-Facing FamiliesMarket-Facing Families 2.Data MIX Assumptions w/ Resource & $$PlanningData MIX Assumptions w/ Resource & $$Planning Best Solution: 1.Market-Facing FamiliesMarket-Facing Families 2.Data MIX Assumptions w/ Resource & $$PlanningData MIX Assumptions w/ Resource & $$Planning

27. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Forecasting (Worst of Two Worlds) PTF Horizon Detail I Suicide Quadrant II Aggregate Only Quadrant Exec. S&OP III Building to Customer Demand

28. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Demand Planning (Forecasting) Demand Supply MIX Volume Families SKU’s Resource Req. Plan

29. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Market-facing Families... Proper definition of families must promote best forecasting. Product Fire Retardant Chemicals Customer -Ford -Penna House -Sony -Acme Lumber - and more Markets can be tied to extrinsic leading indicators; Products and Customers typically can not! Market - Automotive - Furniture - Electronics - Construction - and more

30. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Families... S&OP Families -- In eS&OP, Families are aggregate groups of products that are similar in the way that customers and/or markets view their use. eS&OP Families are used to develop a reasoned, reasonable, credible, and transparent forecast based on market trends, grounded in extrinsic leading indicators. Lean Families -- In Lean Manufacturing, the term Families is used to mean the grouping of products that are manufactured by the same resources. This is often called a ‘ value stream. ’ The idea is to create a ‘ synchronous flow ’ in manufacturing that allows products to be produced at a uniform and linear market driven rate – known as Takt Time.

31. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Two types of forecasting... Mfg. CompanyMarketsDistribution Center Shipment s POS Sales: 1-3 Mos Master Scheduling Demand Pull Marketing: 1-18 Mos Executive S&OP Mix Volume Customer Centric Market Centric Customers Sales Markt’g

32. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Size (5 in all): Quarts Pints Jelly Top Opening: Wide-mouth Reg-mouth Fresh Preserving

33. Product Groupings (for Product Groups) Design Objectives: Highest level possible based on agreed upon market drivers Grouped based on how capacities are constrained Proven Grouping Assumptions that allow demand to be applied to supply groupings

34. Product Families WeatherEconomy/CCDistributionPricing/Promo Volume Baseline Demand Process Volume Forecast Jars Key Market Drivers at the Volume Level

35. Regression Analysis Results

38. Closures to Mouth Size

39. Product Families WeatherEconomy/CCDistributionPricing/Promo Volume Baseline Demand Process Volume Forecast Jars Key Market Drivers at the Volume Level

40. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Forecasting (Worst of Two Worlds) PTF Horizon Detail I Suicide Quadrant II Aggregate Only Quadrant Exec. S&OP III Building to Customer Demand

41. Reasonable Grouping Assumptions Volume Forecast for Closures Volume Forecast for Jars Volume Forecast for Jar by Neck Size (W/M – Reg) Closure/ Size and Type (W/M – Reg; Lid – Cap)

42. Multiple View Forecasting

43. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Customer View Customer View Historical View Historical View Market View Market View Reconciliation Process (The DAM Meeting) Reconciliation Process (The DAM Meeting) Consensus Forecast Consensus Forecast (When it does not meet business $$$ needs... ) Applying “Puts & Takes” – Actions! (When it does not meet business $$$ needs... ) Applying “Puts & Takes” – Actions! Company Forecast Company Forecast Multiple Views...

44. Pilot Market Facing Forecasts: Healthcare Commercial Institutional Develop three different market facing forecasts using the same forecasting methodology but done separately. Comparison to the Annual Business Plan The effect of new products Other initiatives taking place Arrive at one set of Demand numbers to run the business Historical view as a reference point (not forward looking) Change the market view to conform with the Customer View or vice Versa Internal Data:  New sales data (last month)  Previous forecast External Data:  Leading indicators  Market Data Data Demand Planning – Market Facing Pleat Forecast Customer View 3-6 Months Market View 18-24 Months Historical View 18-24 Months Demand Plan to the Supply Team Initial Consensus Forecast Demand Agreement Meeting Company Forecast Puts and Takes

45. Demand Planning – Healthcare Pleat Market Forecast Data Gathering Data to the Demand Agreement Meeting Unacceptable Market View 18-24 Months Three Leading Market Indicators: Hospital Care Expenditures Facilities Expenditures Healthcare Share of GDP Multivariate Regression Analysis: Actual Leading Indicators to be Investigated Use Forecast Estimates Revise Leading Market Indicators Acceptable Market Share Analysis Data Matrix to be Developed Use Forecast Estimates Revise Forecast Acceptable Customer View 3-6 Months Top Three Healthcare Contracts are 65% of the Pleat Sales: Premier Med Assets HTPG Investigate the other 35% of similar Buying patterns Develop three forecasts for Each Contract Develop a forecast of “All Other” healthcare Combine the Forecast for all Healthcare pleats Historical View 18-24 Months Purchase and get up to speed on the Forecast X software package Forecast X picks the best forecast among the methods available for Healthcare Pleats

46. Review Pine Sol Performance vs. Dilutable Category 46 Trend lines show that Dilutable Category and Pine Sol are moving in opposite direction However, there is a positive correlation between Dilutable Category & Pine Sol (Corr = 0.55) Key Workstreams to turnaround competitive disadvantage shown below include: New Growth Strategy with New Advertising, Packaging Graphics, Innovation in and beyond the dilutable category Note: Pine Sol decline accelerated with pricing action in April 2012 and Fabuloso as key competitive threat

47. Demand Planning Overview 47 Data Gathering Monthly Error Review Updates to data points Customer View (1-24 months) Demand Forecast Pass to Supply Demand Agreement Meeting Discussion of 3 views and align on one number Document assumptions in consensus forecast Consensus Forecast agreed to by all parties with specified variability Final Decision Maker TBD Initial Consensus Forecast in stat cases Final Inputs Judgement Correction GAP Management Exercise Compare to Annual Business Plan Target Acceptable Historical View (1-24 months)Market View (1-24 months) Yes No Simplifying Assumptions to get to $

48. Demand Planning Overview-Market View 48 Market View (1-24 months) Updated Leading Market Indicators*: Distribution Points Household Income Deep Cleaning Occasions Multivariate Regression Analysis** Market View Projection New Products All volume past Launch Reco Demand Spend Advertising Trade Promo Initiatives Pricing Price changes using AI elasticity measures Market Share 3 years of market share data projected forward Competitive Activity New Product Launches Merchandising $s/Initiatives Market View Graphs and Tables for Demand Agreement Meeting 5 Years Historical Data in Equalized unit of measure (stat case) Market View Projection will be the projected market trend without intervention. Additional inputs below will be added to show the volume consequences of those actions Market View

49. 49 Ex: Business Issues Highlighted by Tool Forecast Variability Trending up Forecast Bias; Aug-Oct over shipped forecast (pessimistic); Nov-Dec under shipped forecast (optimistic??) What actions/behaviors resulted in getting higher forecast as we got closer to execution?

50. 50 Ex: Business Issues Highlighted by Tool  Fact Based questions regarding business Why did our forecast projection for December get worse as we got closer to December? Are there behaviors that need to be addressed that can help us get better in the future? One “Ah-Hah” here…if we focused on forecast accuracy we would have missed the concept that the first two bullets highlighted! Another “Ah-Hah” here…a PICTURE is worth a thousand words and can help us drive behavior changes!

51. Home Care Global Demand Plan Metrics 51 HomeCare bias was excellent for Jul at 100%, consistent with Jun. HomeCare variation remained consistent at 3% reflecting later additions of ~400msc between May and Jul. Bias Bias stamped out! Next Up…Minimize Variability

52. Demand Integration Each month, compare “Brand Book” (top-down model just reviewed) with bottom-up Sales Book (key account RSM forecast), and statistical forecast to arrive at Consensus Demand

53. Consensus Demand Performance Waterfa;; Chart

54. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Forecasting -- Two Parts Mix M.Sched. Volume Exec. S&OP Data Management Anybody Judgment SalesMarketing

55. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Sales & Marketing’s Job Enablers... No full granularity for the entire planning horizon - 18 to 24 Months (Getting out of the Suicide Quadrant) Family definitions that enable them to correlate to extrinsic factors that are “leading indicators” (Using “simplifying data assumptions” to deal with MIX) No complex software cost or learning curve Willingly & Enthusiastically Join the Party!

56. Simplifying Assumptions about MIX

57. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Using Market-Facing Families & Simplifying Data Assumptions Resource Department Equipment Supplier Operations (Supply) // Sales & Marketing (Demand) Markets Segments Channels Customers Markets Segments Channels Customers Traditional Solutions : 1.Full Granularity orFull Granularity or 2.Fcs’t in Supply FamiliesFcs’t in Supply Families Traditional Solutions : 1.Full Granularity orFull Granularity or 2.Fcs’t in Supply FamiliesFcs’t in Supply Families Best Solution: 1.Market-Facing FamiliesMarket-Facing Families 2.Data MIX Assumptions w/ Resource PlanningData MIX Assumptions w/ Resource Planning Best Solution: 1.Market-Facing FamiliesMarket-Facing Families 2.Data MIX Assumptions w/ Resource PlanningData MIX Assumptions w/ Resource Planning

58. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Family Feud... When are they the same? Small Widgets Medium Widgets Large Widgets Consumer Market Housing Market Industrial Market Supply Demand Typically NOT! World Wide Widget Company

59. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Non-Aligned to Markets Small Widgets Medium Widgets Large Widgets Consumer Market Housing Market Industrial Market SupplyDemand World Wide Widget Company

60. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Simplifying Assumptions Volume ratio from “market facing” family to “supply family” Conversion of units to units of capacity (hours?) (average, or weighted average) Conversion of units to $$$.

61. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Developing & Validating Assumptions Assumption Sensitivity Avoid the Perception of Precision

62. 62 New demand Split Projection Small size 55% Control chart 101

63. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Graphical Report

64. Supply Groupings DIY Glass Supply/Capacity (Anchor) Closure Plant Capacity (W/M – Reg; Lid – Cap) Packaging Capacity - DIY (W/M – Reg) Tinplate Supply/ Capacity Volume Forecast for Jar by Neck Size (W/M – Reg) Closure/ Size and Type (W/M – Reg; Lid – Cap)

65. Demonstrated Capability Reg Mouth

66. Slide 66 DIY Demonstrated Capacities Reg Mouth

67. Slide 67 The Results DIY Reg Mouth

68. Tin-Plate 2009 Supply Agreement Total Sheets

69. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Fiscal Information... eS&OP includes FULL FINANCIAL INTEGRATION (Phase III)

70. Real World Benefits – Hard & Soft

71. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com71 The Executive S&OP Process Step #1 Data Gathering End of Month Decisions & Game Plan Step #5 Executive Meeting Conflict Resolution, Recommendations & Agenda for Exec. Mtg. Sales Actuals, Statistical Forecasts & Production Actuals Step #2 Demand Planning Step #4 Pre-S&OP Meeting Capacity constraints 2nd-pass spreadsheets Management Forecast 1st-pass spreadsheets Step #3 Supply Planning Heavy Lifting Creates a Disciplined Rhythm

72. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com What are the Benefits ? Hard Benefits: Higher Customer Service Reliable, Responsive, Wide Variety Lower Finished Goods Inventories More Stable Supply Rates Less Unplanned Overtime Higher Productivity More controlled intro of new products

73. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Representative Hard Benefits *... BenefitRangeAverage On-Time Del’y Up 10 to 40%Up 25% Inventory Levels Down 12 to 70% Down 41% Mfg. Downtime Less 20 to 50% Less 35% Plant Efficiency Up 2 to 33% Up 17% Transport. Cost Down 5 to 30% Down 17% * “Sales & Operations Planning: Best Practices -- ” Dougherty & Gray -- 2006 Sustainable 5% improvement; not possible Sustainable 50% improvement; very possible

74. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com What are the Benefits ? Soft Benefits: Better Decisions in Less Time Enhanced Teamwork - Operating Level Mgt. Enhanced Teamwork - Executive Mgt. (Energy Alignment)

75. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Energy Alignment Accomplishment

76. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com What are the Benefits ? Soft Benefits: Better Decisions in Less Time Enhanced Teamwork - Operating Level Mgt. Enhanced Teamwork - Executive Mgt. (Energy Alignment) Monthly Update to the Business Plan Greater Accountability Greater Control Masters of Own Destiny Top Management’s Handle on the Business Hard benefits are the direct result and consequence of soft benefits!!

77. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Research Reports *... Success with Executive S&OP is: 60% = Culture/Behavior Change 30% = Process Definition & Discipline 10% = Technology Altimiter/AMR Boston, Sept 2010

78. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com An Important Point... Success with eS&OP is more Cultural than Technical (Tomorrow’s Discussion)

79. Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Bob Stahl www.RAStahlCompany.comwww.RAStahlCompany.com Thanks for Listening